I believe bitcoin will eventually become a settlement layer. It will be developed further to use sidechains that link back to the value store of bitcoin. Settlement between entities or chains will occur periodically valued in bitcoin.
Symilar to what happened with banks in the past. Funds are transferred between banks by ledger. Physical transfer occurred later.
A token currency may be Tethered to bitcoin (or tethered to a number of assets - e.g bitcoin, precious metals and land).
Crypto still has a long way to evolve. Exchanges are still falling over, hacks are prominent, transfer is cumbersome and relatively complex (try teaching grandma) , values fluctuate wildly and the code is still a work in progress.
Current phase - surviving legislation.
Topic: How would an Economy based on BTC look like? - page 2. (Read 447 times)
It would be much closer to what we have had during the time of commonly accepted gold coins.
Back to the old days, even if you had coins forged in different countries - these had been accepted worldwide as they had the more or less commonly accepted value (because of the content of gold).
Of course, depending on the number of factors, the price of one product would have a different cost, but the payment method would be the same.
As well, if we had an economy based on BTC in the way we had gold, then it would not rule out banks.
Banks simply would become closer to what have been centuries ago, unable to "print" BTC out of thin air.
Impossibility of printing currency out of thin air could limit state spendings (which are often nothing but a loan, which will be paid back with another loan - this is how rolling loans works).
Back to the old days, even if you had coins forged in different countries - these had been accepted worldwide as they had the more or less commonly accepted value (because of the content of gold).
Of course, depending on the number of factors, the price of one product would have a different cost, but the payment method would be the same.
As well, if we had an economy based on BTC in the way we had gold, then it would not rule out banks.
Banks simply would become closer to what have been centuries ago, unable to "print" BTC out of thin air.
Impossibility of printing currency out of thin air could limit state spendings (which are often nothing but a loan, which will be paid back with another loan - this is how rolling loans works).
Just as the title states. How do you guys think a country with its only economy being BTC look like? Would it look like how western countries are of today, some Cyberpunk future, or maybe just completely mess up? Honestly, I think it'd look something like the current state of western countries, as if the only currency allowed is BTC, then in theory it should always balance out and be flexible.
You don't understand how economy works. There is no such thing as a BTC only economy. What would its export product be? What would they be able to SELL as a product or a service?
Mining BTC? Miners don't earn enough to run a country. And if all nodes were centralized there, it would remove the value of Bitcoin network. Not everything is a cure with Bitcoin alone...
Just as the title states. How do you guys think a country with its only economy being BTC look like? Would it look like how western countries are of today, some Cyberpunk future, or maybe just completely mess up? Honestly, I think it'd look something like the current state of western countries, as if the only currency allowed is BTC, then in theory it should always balance out and be flexible.
it is very unlikely that in a country they only use bitcoin for the economy would certainly be a problem for children who have not been able to learn about bitcoin of course they cannot use bitcoin to buy snacks and it might also be uncomfortable for some of them if they want dealing with bitcoin because you have to always use cellular data.
In such a case like this, it will be a necessity to educated the children about the future payment system that they will eventually use. It is quite not that easy in the beginning, but if we became used to it, it will not be hard. I am waiting for the invention of an RFID system that will store cryptocurrency such as bitcoin. In such a way that we will not need to worry about spending too much time just for a single daily transaction that we need to execute.
There will probably an app that will exist about easier for kids to make transactions using the centralized coin backed by government while BTC will function like gold reserves today. Or if BTC is really going to be used by individuals just like a country making transactions to another country, we will probably count prices by satoshis. If I have to buy snacks, will use my phone and scan how much satoshis will I send.
Well, for one thing, it will be totally transparent. So if a group or a individual is tied to a Bitcoin address, all transactions done with that address would be traceable back to them. Let's take the government for example : The government might allocate a specific Bitcoin address for a specific tender or a project and all the money being paid for that project, would be traced on the Blockchain.
The public will know when payments are done and how much were paid and if there was any irregularities that were paid from that Bitcoin address. < over payments / bribes etc. >
The public will know when payments are done and how much were paid and if there was any irregularities that were paid from that Bitcoin address. < over payments / bribes etc. >
Just as the title states. How do you guys think a country with its only economy being BTC look like? Would it look like how western countries are of today, some Cyberpunk future, or maybe just completely mess up? Honestly, I think it'd look something like the current state of western countries, as if the only currency allowed is BTC, then in theory it should always balance out and be flexible.
it is very unlikely that in a country they only use bitcoin for the economy would certainly be a problem for children who have not been able to learn about bitcoin of course they cannot use bitcoin to buy snacks and it might also be uncomfortable for some of them if they want dealing with bitcoin because you have to always use cellular data.
In such a case like this, it will be a necessity to educated the children about the future payment system that they will eventually use. It is quite not that easy in the beginning, but if we became used to it, it will not be hard. I am waiting for the invention of an RFID system that will store cryptocurrency such as bitcoin. In such a way that we will not need to worry about spending too much time just for a single daily transaction that we need to execute.
This is hard to describe because no country has used Bitcoin in their economies, most of them forbit it. I doubt there will be countries that want to use Bitcoin in their economy, the volatile will be the main reason to not use BTC. The complexity to adopted will make government not considering to use it.
From a non-biased perspective, it will be in shambles and not enough bitcoin would go around the economy as anyone would be urged to hold as it incentivizes the people more rather than spend their precious bitcoins. The economy would literally try to save itself from itself, and would not be functional in the long run as the money supply would be low to go around.
I believe that is the future! 2040 will be the first country to adopt BTC as a currency.
Just as the title states. How do you guys think a country with its only economy being BTC look like? Would it look like how western countries are of today, some Cyberpunk future, or maybe just completely mess up? Honestly, I think it'd look something like the current state of western countries, as if the only currency allowed is BTC, then in theory it should always balance out and be flexible.
I think a county cannot rely on bitcoin completely due to its volatile nature hence it would be a complete mess up because even to pay a simple bill or purchase it you pay an amount by the time the vendor receives it the value will be increased or decreased. If we have a stable version of bitcoin I mean Bitcoin's stable coin then it work smoothly and this is possible only if a new country is craved out.
Firstly we have to bear in mind that an economy balanced on bitcoin would somehow be regulated so things would not be a complete mess the way it would normally do if anybody could just do what they like, anyways I think a country depending solely on Bitcoin as their currency would thrive because of faster and transparent transactions, your time would be much more productive when you dont have to visit my banks anytime any of your transaction fails, no more waiting a long time to send money internationally or having to stand in a queue to do it in a bank.
While it's convenient, let's not forget the downside, Bitcoin presently do not have the scalability to handle that much transactions and there would be lots of backlogs if it were to be implemented and the price isn't the most stable in the world.
While it's convenient, let's not forget the downside, Bitcoin presently do not have the scalability to handle that much transactions and there would be lots of backlogs if it were to be implemented and the price isn't the most stable in the world.
I realized I don't think I asked the question as I wanted. In this scenario the country doesn't switch to the coin, the currency is just BTC, built upon BTC, and will continue to rely only on BTC, not some foreign currency like USD or Euro. What I'm thinking is just a new country. Like the idea of Esperanto land.
If as a new country and it to peg it currency to Bitcoin, then they should expect their economy to be a complete mess. Bitcoin is known for instability in price. Best idea is to accept it as one of payment means and not as general currency.
Surely and definitely it would be fast based transactions were all of breakdowns are clearly available to all, no hidden agendas and charges, such as that. No more worries of your company's money being stolen, transparent. That could also lead to government agencies who collect taxes in the advantage as some of the entrepreneurs here are somewhat giving false informations of the income tax returns.
But int the end it depends on how a will country treat it, in the case of 3rd world countries like where I live, maybe it will be difficult to utilize. Just portraying it in my mind is unimaginable. I will give me country for at least 10 years time, aside from that if the leaders are corrupt, then it would be very impossible to have a bitcoin society running on here. It would be great if the leaders are supportive of the new technologies like this, hopefully they would.
But int the end it depends on how a will country treat it, in the case of 3rd world countries like where I live, maybe it will be difficult to utilize. Just portraying it in my mind is unimaginable. I will give me country for at least 10 years time, aside from that if the leaders are corrupt, then it would be very impossible to have a bitcoin society running on here. It would be great if the leaders are supportive of the new technologies like this, hopefully they would.
I realized I don't think I asked the question as I wanted. In this scenario the country doesn't switch to the coin, the currency is just BTC, built upon BTC, and will continue to rely only on BTC, not some foreign currency like USD or Euro. What I'm thinking is just a new country. Like the idea of Esperanto land.
Asgardia .. it's a nation that formed off the earth could be the first doing that . Any country in this earth wouldn't be able to fully using bitcoin as the main currency ... as the main financial system, it would takes really long time to make it happened. I heard also Venezuela trying to do this as their financial crisis getting worse, now I didn't hear much anymore about this. Anybody have a clue? Or it's simply totally failed ..
Just as the title states. How do you guys think a country with its only economy being BTC look like? Would it look like how western countries are of today, some Cyberpunk future, or maybe just completely mess up? Honestly, I think it'd look something like the current state of western countries, as if the only currency allowed is BTC, then in theory it should always balance out and be flexible.
it is very unlikely that in a country they only use bitcoin for the economy it will certainly be a problem for children who have not been able to learn about bitcoin of course they cannot use bitcoin to buy snacks and may also be uncomfortable for some of their communities if they want dealing with bitcoin because you have to always use cellular data.
It's fun to think about, but I don't think it'll ever be a good idea/thing to happen, bitcoin is much too unstable as main currency, and even though banks are sometimes assholes, using fiat to buy stuff is always going to be more popular then spending 20 cents to send a 5 dollar transaction (excluding lightning network ofc).
Just as the title states. How do you guys think a country with its only economy being BTC look like? Would it look like how western countries are of today, some Cyberpunk future, or maybe just completely mess up? Honestly, I think it'd look something like the current state of western countries, as if the only currency allowed is BTC, then in theory it should always balance out and be flexible.
it is very unlikely that in a country they only use bitcoin for the economy would certainly be a problem for children who have not been able to learn about bitcoin of course they cannot use bitcoin to buy snacks and it might also be uncomfortable for some of them if they want dealing with bitcoin because you have to always use cellular data.
Just as the title states. How do you guys think a country with its only economy being BTC look like? Would it look like how western countries are of today, some Cyberpunk future, or maybe just completely mess up? Honestly, I think it'd look something like the current state of western countries, as if the only currency allowed is BTC, then in theory it should always balance out and be flexible.
Eradication of fiat money and infuse only bitcoin will not have great economic effects on a country right at this moment! If it's a small country of few millions, then probably it wouldn't have much impact, but if it's a densely populated country like India and China, the result will be disastrous! It's hard to scale up for bitcoin to cater the need of few billions of people!
Secondly, the volatility is another risk factor for bitcoin to be accepted asa sole currency for any country! Frankly speaking, bitcoin isn't built to become a mainstream currency within a centralized environment! We are good as a parallel currency in a parallel economy, not mainstream!
I realized I don't think I asked the question as I wanted. In this scenario the country doesn't switch to the coin, the currency is just BTC, built upon BTC, and will continue to rely only on BTC, not some foreign currency like USD or Euro. What I'm thinking is just a new country. Like the idea of Esperanto land.
it depends on "when" you are talking about this hypothetical scenario.
right now and probably for another decade bitcoin is volatile so if a country were to use bitcoin its economy would get wrecked as price shoots up and drops with bubbles and crashes. the "value" of the country's currency should remain moderately stable otherwise nobody can do anything.
Bitcoin is very volatile and while there is high volatility it can not become like fiat money. People need to be confident in a stable exchange rate of the currency using which they are calculated with each other. Perhaps the role of digital money would be more suitable USDT and similar stable coin.
Until BTC isn't as volatile as today, it's not viable and I don't think would happen. A digital currency based on blockchain and decentralized, and is stable, is more acceptable than Bitcoin. Bitcoin is more of an asset, like your shares of a conpany in a stock market. But nevertheless, that cyberpunk future is possible, but I personally think that there'll be a better technology, much better than blockchain that we can't think of yet, since that time is too far away from now, given the poverty and current technology.
Jump to: